HBA-TYH H.B. 3300 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3300
By: Coleman
State Affairs
3/30/1999
Introduced



BACKGROUND AND PURPOSE 

The 75th Legislature passed legislation allowing the creation of sports and
community venue districts financed by certain local taxes for the purpose
of constructing sports and community venues such as stadiums, convention
centers, and museums.  If approved by the voters, these districts are given
all powers necessary to plan and complete a venue project, including the
power of eminent domain. H.B. 3300 limits the power of eminent domain of a
venue district to only the actual physical site of the approved venue
project.  This bill also creates a code of conduct for board members and
employees of certain venue districts. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 335, Local Government Code, by
adding Section 335.0711, as follows: 
 
Sec. 335.0711.  LIMIT ON POWER OF EMINENT DOMAIN IN CERTAIN DISTRICTS.
Defines "facility site."  Provides that this section applies only to a
district located in a county with a population of 2.4 million or more.
Authorizes a district to use its power of eminent domain under Section
335.071 (General Powers of District) only to acquire a facility site as
part of an approved venue project.  Prohibits a district using its right
and power of eminent domain for any other purpose.  Prohibits a district
from participating in any way in planning or zoning issues before the
governing body of a municipality.  

SECTION 2.  Amends Chapter 335, Local Government Code, by adding Subchapter
F, as follows: 

SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
 
Sec. 335.101.  DEFINITIONS. Defines "director" and "employee."
  
Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  Provides that this subchapter
applies only to a district located in a county with a population of 2.4
million or more.  
 
Sec. 335.103.  APPLICABILITY OF LAWS.  Provides that Chapter 171
(Regulation of Conflicts of Interest of Officers of Municipalities,
Counties, and Certain Other Local Governments) applies to an employee as if
the employee was a local public official, as defined by Section 171.001
(Definitions).  Provides that Chapter 553 (Public Disclosure), Government
Code, applies to an employee as if the employee was a public servant, as
defined by Section 553.001 (Definitions), Government Code.  Provides that
Chapter 573 (Degrees of Relationship; Nepotism Prohibitions), Government
Code, applies to an employee as if the employee was a public official, as
defined by Section 573.001 (Definitions), Government Code.  
 
Sec. 335.104.  DISTRIBUTION OF CODE OF CONDUCT.  Requires the presiding
officer  of the board of directors of a venue district (board)  to provide
to directors and employees, as often as necessary, a code of conduct
regarding the requirements for office or employment, including the
enumerated information. 
  
Sec. 335.105.  RULEMAKING.  Authorizes the board, by rule, to modify its
code of conduct.  
 
Sec. 335.106.  GENERAL DUTIES.  Requires a director or employee to carry
out the enumerated duties. 
 
Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  Provides that this section
applies to a vendor who responds to a district request for a proposal or
otherwise communicates  with the district in connection with a potential
agreement between that vendor and the district.  
 
(b)  Requires the board, by rule, to design a  conflict of interest
questionnaire that requires disclosure of a vendor's affiliations or
business relationships that might cause a conflict of interest.  
 
(c)  Requires a vendor to file a completed conflict of interest
questionnaire with the board secretary within seven days after the vendor
performs the enumerated actions. 
  
(d)  Prohibits the board from approving an agreement with a vendor unless
the vendor's completed questionnaire has been on file with the board
secretary for at least five days.  
 
(e)  Requires a vendor to file an updated completed questionnaire with the
board secretary at the enumerated dates. 
 
(f)  Requires each contract entered into between a district and a vendor to
contain a provision stating that the contract is void if the board or
vendor violates this section.   
 
Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS AND
EMPLOYEES.  (a)  Requires the board, by rule, to design a conflicts
disclosure statement for directors and employees that includes the
enumerated items. 
 
(b)  Provides that the disclosure requirement applies to a director or
employee and a person related to that director or employee within the first
degree by consanguinity or by affinity, as defined by Subchapter B
(Relationships by Consanguinity or by Affinity), Chapter 573, Government
Code.  
 
(c)  Requires a director or employee to file a conflicts disclosure
statement with the board secretary not later than the end of the first
business day on which the director or employee became aware of the
relationship between the district and the vendor if any of the enumerated
conditions occur. 
  
(d) Authorizes  the director, if a director has knowledge that another
director has not made a disclosure, to notify the presiding officer of the
board of this fact, or to notify the board secretary if the presiding
officer is the person who failed to make the disclosure. Authorizes the
presiding officer or secretary, as appropriate, to  make a preliminary
inquiry regarding the disclosure and to notify in writing the official who
appointed the director of the alleged failure to disclose and the reasons
for believing that a failure to disclose occurred.  
 
(e)  Prohibits an employee from receiving, during a 12-month period, any
gifts from a vendor that have a total value of more than $250 unless the
employee receives written approval from the presiding officer.  
 
Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  Authorizes an
employee, with the presiding officer's consent, or a director to seek a
written advisory opinion from the district's general counsel concerning
whether a violation of Section 335.107  or 335.108 exists in a certain
situation.  Provides that the request must provide detailed information
about the alleged violation or hypothetical situation.  Requires the
district's general counsel, after receiving a request, to prepare a written
advisory opinion addressing whether a violation has occurred under the
information provided.  Authorizes a director or employee to rely in good
faith on a written advisory opinion issued with respect to a potential
violation of Section 335.107 or 335.108.  
 
Sec. 335.110.  PENALTIES.  Authorizes the board to reprimand, suspend, or
terminate an employee who violates the district's code of conduct.  

SECTION 3.  Effective date: September 1, 1999.
  Makes application of Section 335.107 of this Act prospective.

SECTION 4.  Emergency clause.